Did you have an extremely profitable  month when you made a very good money then the very next month you lost every thing ?!
Then, you made a lot of profits again and thought that oh ya trading is lovely and easy .. after that a huge loss again taking all your profits !!

Dear friend i am sorry to tell you that you are a YOYO Trader !

What we mean by the YOYO Trader is being up and down in your Equity Curve ( up 50 % down 70 % up 60 % down 50 % ... etc )
and this is actually very common especially in the Forex Market where the existence of Leverage can trick the majority of beginners making them live the Million Dollar Dream .. !!

To have an idea about the YOYO Trader equity curve let's think about the following diagram as we represented the equity curve by numbers between ( + 10 and - 10 ) .on the vertical line and of course time on the horizontal line ..

You see now ha ?

Unfortunately this curve is describing thousands of traders struggling in the trading business but,  let's be positive and think about the possible reasons for that curve .. shall we ? ☺

1 - Missing a plan :

It is obvious that random trading without any kind of taking other scenarios into consideration can lead to catastrophic trading results so, being aware of that should tell you that you really must have a solid well defined Trading Plan for all possible outcomes .

2 - Moving from one trading strategy to another :

Very common Trading Mistake and i think we all fall into that one didn't you ? ☺ so, it is extremely important to spend enough time to test your trading strategy and to have a scientific method to assess your trading method not moving from strategy to another just because you had some loosing trades !

3 - Bad use of Leverage :

Of course it can draw that kind of curves when you misuse the leverage so, it is not something i consider positive that this Forex Broker is offering 1 : 1000 leverage and that one offers whatever !!
Using leverage can increase your profits and can increase your losses as well so Learn How to Estimate your Risks ..

This was just few examples of reasons that make your trading results dancing like a YOYO ! ☺so, my dear friend .. you don't need to suffer from huge losses then huge wins .. etc but all you need is a steady up rising curve .. YES you will have losses and this is the cost of doing business not that you are a bad trader or stuff like that ..

Remember that taking an estimated loss is extremely better than having a series of winners then ONE Big LOSS  that takes all the winners if not the whole account ☺

I hope you all the best and consistent profitable trades .